Continues to fall, albeit at a slower pace as sellers attack 0.8300

• EUR/GBP parses some of its monthly gains courtesy of risk-off market sentiment and technical barriers.
• The 100 DMA capped the EUR/GPB rally, followed by a three-day consolidation.
• A daily close below 0.8358 would keep EUR/GBP sellers in control as they prepare for a 0.8300 attack.

Shared currency losses deepened for the third day in a row against the pound sterling amid a risk-off market mood fueled by the conflict between Russia and Ukraine. That said, at press time, the EUR/GBP is trading at 0.8354.

EUR/GBP price action over the past three days witnessed a drop in line with the general trend of the daily moving averages (DMA), above the spot price. However, when the BoE and ECB revealed their monetary policy decisions, the pair rose almost 200 pips, towards 0.8477, which pierced the 100-day moving average (DMA), reversing three days later.

EUR/GBP Price Forecast: Technical Outlook

EUR/GBP remains tilted lower. Last Friday’s price action triggered a drop as the bears retraced the 50-DMA at 0.8413, which exacerbated a move lower past 0.8400, hitting a daily low at 0.8358.

During the overnight session for North American traders, EUR/GBP bulls attacked the daily low of Feb 11 and hit a daily high at the daily pivot point of 0.8385, followed by a drop below 0.8358, where the EUR /GBP trades comfortably where EUR/GBP trades comfortably as the end of the American session approaches.

The first support level of the EUR/GBP would be 0.8345. A breach of the latter would expose the Jan 31 low at 0.8304. Once that level is cleared I would expose the yearly low at 0.8283 and then a test of the 0.8200 level.

Additional technical levels